Due to high commodity prices and active gas marketing and trading, oil and gas major BP on Tuesday posted third-quarter profits that were greater than anticipated.

The British energy giant reported an $8.2 billion underlying replacement cost profit for the three months that ended in September, which is a substitute for net profit. In comparison to the prior quarter’s net profit of $8.5 billion, which was $3.3 billion, this quarter’s net profit was $10.3 billion, a considerable rise.

A third-quarter net profit of $6 billion was what analysts surveyed by Refinitiv had predicted. BP stated that it had decreased its net debt to $22 billion from $22.8 billion in the second quarter and that it had announced an additional $2.5 billion in share repurchases.


Contrasting with a profit of $9.3 billion in the prior quarter, it posted a net loss of $2.2 billion for the period. In addition to the $8.1 billion charge for adjusting items, BP reported inventory-holding losses of $2.2 billion in the third quarter.

The largest oil and gas companies in the world have recently claimed record profits thanks to rising commodity prices as a result of Russia’s invasion of Ukraine. Shell, TotalEnergies, Exxon, and Chevron, four major oil companies, have reported third-quarter earnings totaling close to $50 billion when combined with BP.

This has re-ignited calls for more taxes on record oil company profits, especially at a time when soaring gas and fuel costs have increased inflation globally. Joe Biden, the president of the United States, issued a statement on Monday urging oil companies to stop “profiteering from the war effort” and threatening to raise taxes if they did not.

Groups representing the oil and gas industries have previously opposed suggestions for a windfall tax, saying they would do nothing to stop a sudden increase in energy prices and might even discourage investment.

In early trading, shares of the London-listed BP increased by about 1%. Over 45% more has been made on the company’s stock so far this year.

Environmental campaign organizations referred to BP’s third-quarter results as “a smack in the face” for the millions of Britons experiencing an intensifying cost-of-living crisis and claimed they demonstrated the necessity for a windfall tax.

The primary factor contributing to the climate issue is the use of fossil fuels like coal, oil, and gas. Bernard Looney, the CEO of British Petroleum, said during a panel discussion at the ADIPEC conference in the United Arab Emirates on Monday that he understood why the record profits of the oil majors were being criticized by the public, but he defended the company’s track record of investing and paying taxes.

London, England is home to the global headquarters of the British oil and gas corporation BP. One of the “supermajors” in the oil and gas industry, according to revenues and earnings, it is also among the biggest corporations in the world. It is a vertically integrated corporation that engages in power generation, trading, distribution, and marketing, as well as oil and gas exploration and extraction, refining, and refining.

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